Asked by Armon Sesson on May 20, 2024
Verified
What is subjective probability
A) a personal estimate of what the likelihood of an outcome is
B) what an outcome is personally worth to an individual
C) the expected value of an outcome
D) an individual's willingness to take risks
Likelihood of Outcome
The probability or chance that a specific outcome will occur out of a set of possible outcomes.
Personal Estimate
An individual's judgment or assessment of something, often based on personal experiences or perceptions.
- Examine the impact of perceived utility and anticipated value on personal decision-making processes.
Verified Answer
KA
Khalid AlqarniMay 23, 2024
Final Answer :
A
Explanation :
Subjective probability is an individual's personal estimate of the likelihood of an outcome, based on their own experiences, beliefs, and intuitive judgments, rather than on long-run frequency data or mathematical calculations. It reflects an individual's degree of confidence in a particular event occurring, and can vary widely from person to person, even for the same event.
Learning Objectives
- Examine the impact of perceived utility and anticipated value on personal decision-making processes.